Text sizing
These stories, excerpted and edited by Barron’s, ended up issued a short while ago by expenditure and analysis corporations. The reports are a sampling of analysts’ wondering they must not be deemed the sights or tips of Barron’s. Some of the reports’ issuers have delivered, or hope to deliver, financial commitment-banking or other companies to the providers remaining analyzed.
Kenvue
KVUE-NYSE
Overweight • Cost $26.30 on May well 26
by J.P. Morgan
We are initiating protection of Kenvue with an Over weight rating and a December 2023 value goal of $29. As the greatest pure-engage in purchaser health and fitness company in the earth adhering to its separation from guardian Johnson & Johnson, Kenvue is uniquely positioned to benefit from shopper megatrends (self-treatment, getting old).
We assume Kenvue to supply resilient progress forward in large addressable markets, with iconic models that variety sturdy customer connections from beginning in a portfolio spanning chilly, flu, ache, allergy, and smoke-cessation over-the-counter medicines, skin treatment, mouthwash, toddler treatment, and wound care, amid some others.
As a stand-on your own company, we consider that Kenvue’s board and administration will be more centered and accountable for the development and profitability of the business enterprise adhering to the separation that began in 2019, with considerable options to scale.
At our $29 December 2023 price tag concentrate on, Kenvue will be valued at 16 instances business benefit to estimated Ebitda for 2024, which is about the place Obese-level rated Colgate-Palmolive trades for estimated 2023.
C3.ai
AI-NYSE
Outperform • Price tag $40.01 on June 1
by Wedbush
We are upgrading C3 to Outperform from Neutral and increasing our price target to $50 from $24.
Although it will be a bumpy road, we imagine that C3 has turned a corner and is prepared to now capitalize on the $800 billion artificial-intelligence transformational option in excess of the future 10 years, with use conditions rising throughout the board and the company in a special situation to aid guide the cost and monetize this on the lookout ahead the subsequent 12 to 18 months.
C3.ai delivered sound fiscal fourth-quarter benefits showcasing top rated- and bottom-line beats. With the company aiming to be hard cash positive and non-GAAP successful by fiscal 2024, we feel that this quarter was yet another important phase in the right direction.
CSX
CSX-Nasdaq
Acquire • Price $30.67 on Might 31
by UBS
We up grade CSX [the railroad company} from Neutral to Buy. Our analysis of interest rate changes, ISM new orders, and industrial production point to weakening and an eventual bottoming in industrial-related volumes in second-quarter 2024 or third-quarter 2024.
However, with intermodal volumes likely bottoming year over year in the second quarter, we see a path to volume growth for CSX in 2024 with intermodal growth of 4% offsetting a 1% decline in merchandise.
CSX has also realized the most significant improvement in manifest train speed (30% year over year) of all the rails, which positions CSX to capture share from trucks. With rail stocks typically bottoming several months before volumes bottom and CSX trading at only 15 times our estimated 2024 earnings per share, we believe now is an attractive entry point ahead of a potential volume inflection in 2024.
Price target: $37.
Toast
TOST-NYSE
Buy • Price $20.97 on June 1
by BofA Global Research
We initiate coverage of leading restaurant technology provider Toast with a Buy rating and $26 price objective. Our checks at last week’s National Restaurant Association conference illustrated that Toast delivers best-in-class, cloud-native, point-of-sale software/hardware technology to the restaurant industry. Beyond point of sale, the innovative Toast platform integrates payment processing, restaurant operations, digital ordering and delivery, team and table management, payroll, lending, and reporting/analytics.
Adjusted Ebitda margins have steadily improved over the past five quarters, and Toast forecasts positive adjusted Ebitda for the second half of 2023. Free cash flow is also expected to turn positive later this year.
Ryanair Holdings
RYAAY-Nasdaq
Strong • Buy Price $106.39 on June 1
by Raymond James
We are increasing our earnings forecast following Ryanair’s fiscal fourth-quarter 2023 report and investor meetings that we hosted last week, primarily reflecting a stronger fare environment and lower fuel forecast, partly offset by the updated fuel hedge position and greater nonfuel unit cost pressure.
Despite embedding characteristic conservatism in its fiscal-2024 outlook, near-term trends remain constructive, and the recently announced MAX-10 order combined with an increased likelihood of industry consolidation in Europe bode well for Ryanair’s longer-term outlook, given its cost and balance sheet (net cash) advantage relative peers.
We continue to believe that Ryanair is well positioned to take advantage of further demand strengthening in the region as well as having a unique advantage to avoid possible shocks in the industry as peers grapple with higher debt burdens and cost pressures.
Target price: $128.
To be considered for this section, material should be sent to Research@barrons.com.
